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Sep 30, 2020
Diversified Heal Q3 2020 Earnings Report
Announced third quarter results with a net loss attributable to common shareholders of $0.45 per share and normalized FFO attributable to common shareholders of $0.06 per share.
Key Takeaways
Diversified Healthcare Trust announced its third quarter 2020 results, which were materially impacted by COVID-19. The company reported a net loss attributable to common shareholders of $106.9 million, or $0.45 per share, and Normalized FFO attributable to common shareholders of $13.2 million, or $0.06 per share.
Net loss attributable to common shareholders was $106.9 million, or $0.45 per share.
Normalized FFO attributable to common shareholders were $13.2 million, or $0.06 per share.
Same property Cash Basis NOI decreased 32.1% compared to the 2019 period.
Entered into new and renewal leases for an aggregate of 201,721 rentable square feet at weighted average rents that were 4.1% higher than prior rents for the same space.
Forward Guidance
The senior living industry continues to experience significant challenges as a result of the COVID-19 pandemic, which is expected to continue to negatively impact near-term senior living results. The company believes that it is strengthened by the diversity of its portfolio, and that healthcare real estate will benefit from the aging U.S. population in the long term.
Positive Outlook
- Stability of medical office and life sciences portfolio.
- Steps taken earlier in the year to enhance liquidity put the company in a strong position to withstand the effect of the pandemic.
- Strengthened by the diversity of the portfolio.
- Healthcare real estate will benefit from the aging U.S. population in the long term.
- New 10-year lease at a rental rate that is approximately 20% higher than the prior rental rate for the same space for one of DHC's Torrey Pines buildings located in San Diego, CA that is currently undergoing redevelopment.
Challenges Ahead
- Significant challenges in the senior living industry due to the COVID-19 pandemic.
- Continued occupancy declines in senior living communities.
Historical Earnings Impact
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